Every Baby Born Today Owes More Than $13,000 In State Debt: Study

To every proud new parent, your bundle of joy already owes more than $13,000. Babies born today arrive in the red when it comes to state debt, a new report says.

According to a study released Tuesday by State Budget Solutions, a nonpartisan group pushing for state budget reform, every American owes $13,425 in state debt on average. For private sector workers who are shouldering much of the tax burden, the amount of debt adds up to well over $37,000 per worker.

The study released on Tuesday breaks down the total amount of debt facing each state on a per capita basis. The purpose is to highlight how much state debt is costing individual residents, said Bob Williams, president of State Budget Solutions, in a statement released with the survey.

The accrued debts account for state spending on everything from roads, schools, state employee salaries, and even a pork-barrel project or two.

In August, the SBS released another report showing that all together, state governments are facing debts of more than $4.6 trillion. The state with the highest total debt is California, which is $617 billion in the red. New York is second with just more than $300 billion, followed by Texas, Illinois and New Jersey. Vermont has the least amount of debt among the 50 states, with only $5.8 billion in state debt, according to the report.

On a per capita basis, the states with the highest debt load are Hawaii, New Jersey and Alaska. Nebraska has the lowest total debt per capita at just $4,249 for each resident.

Over the last several years, the recession hit states and cities hard, causing revenues from income, property and sales taxes to fall off significantly. To shore up their budgets, many states have slashed work forces and payroll, made deep cuts into services, and have had to hunt for new revenue.

What cuts have been made in your state? How have they affected you? Tell us your story in the comments below.

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America&#039;s Poorest States

Every Baby Born Today Owes More Than $13,000 In State Debt: Study

America&#039;s Poorest States

America&#039;s Poorest States

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10. Oklahoma

<strong>Median household income:</strong> $43,225
<strong>Population:</strong> 3,791,508 (23rd lowest)
<strong>Unemployment rate:</strong> 6.2 percent (8th lowest)
<strong>Percent below poverty line:</strong> 17.2 percent (16th highest)
Oklahoma remarkably low unemployment rate of 6.2 percent for a state that is among the nation's poorest. The poverty rate of 17.2 percent has inched up each year from the 2008 rate of 15.9 percent. The low median income suggests a need for higher paying jobs as Oklahoma relies heavily on agricultural production. Also, government and military, which tend to be low-paying jobs, account for the highest percentage of jobs in the state. But Oklahoma is also a major producer of oil and gas. Growth in the energy sector, which tends to pay more, would help improve on Oklahoma's median income of $43,225.
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